car wash kingpin: john lage and the poor conditions in new york

Interior Photo Jorge QuinterosCover Photo Thomas Hawk

Contents

The Wash New York Campaign 4

Conditions in the Car Wash Industry 6

John Lage “The Car Wash Kingpin“ 8

Meet the Workers 12

Contracts 13

Conclusions and Recommendations 14

Executive Summary 2

Report Design by Rafael Shimunov shmnv.com

Contents

The Wash New York Campaign 4

Conditions in the Car Wash Industry 6

John Lage “The Car Wash Kingpin“ 8

Meet the Workers 12

Contracts 13

Conclusions and Recommendations 14

About the Authors

Executive Summary 2

The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. We build the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.

Make the Road New York is a community-based organization with over 12,000 members that builds the power of Latino and working class communities to achieve dignity and justice through organizing, policy aand survival services. We forge alliances between New York communities that – while diverse – face shared hardships and injustices. Our holistic approach to reducing poverty and empowering our communities enables MRNY to win meaningful, broad-based reforms that New Yorkers can feel every day.

New York Communities for Change is a coalition of working families in low and moderate income communities fighting for social and economic justice throughout New York State. By using direct action, legislative advocacy, and community organizing, our members work to impact the political and economic policies that directly affect us. Through neighborhood chapters and issue-based committees, we are working to ensure that every family throughout New York has access to quality schools, affordable housing, and good jobs.

The Retail, Wholesale and Department Store Union, UFCW, represents workers throughout much of the United States. RWDSU members work in a range of occupations that include retail, food processing, service and health care. The RWDSU has a proud history of building powerful coalitions to fight for greater social and economic justice for working families. The union organizes for better wages and working conditions for all working people and we are particularly proud of our efforts in raising conditions for low-wage workers. Nothing exemplifies the values of the union better than our current efforts to bring a strong union voice to New York City’s car wash workers.

Report Design by Rafael Shimunov shmnv.com

2

Executive Summary

Every day across New York City, thousands of vehicles roll into car

washes owned by John Lage. These are the livery cars that shuttle Wall Street executives between meetings, the taxis that take West Village revelers back home after a night of drinking, and the cars and vans that transport people and goods across the city, helping our economy run. And they are being washed by workers who are living on the edges of poverty.

John Lage is New York’s Car Wash Kingpin, according to the Daily News. Together, he and his business associates own and operate eighteen of the city’s 200 or so car washes and

employ about five hundred workers. We estimate these Lage car washes collectively bring in gross revenue of somewhere around $34 million every year. We believe Lage has profited enormously from his businesses, and has two waterfront homes in Eastchester and Queens that are worth millions of dollars.

In 2005, the United States Department of Labor filed a major lawsuit against him, alleging that he and 15 of his companies had “willfully and repeatedly” violated minimum wage and overtime law by failing to pay workers the money that they had earned. Through three consent judgments and a settlement,

Workers who clean the cars of some of the richest people in the world don’t have to continue toiling in near poverty.

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Lage eventually agreed to pay over $4.7 million in back wages, damages, and interest to more than 1,300 employees.

But even now, many of the employees working for Lage’s owned or operated car washes struggle to survive and support their families on the wages his companies pay: often only about $300-$400 a week. Their schedules are extremely erratic and unpredictable – workers can be sent home because of bad weather or slow business. These workers aren’t given health insurance or paid sick days, let alone any paid vacation every year. And workers are worried about their health and safety as they can be exposed to strong chemicals and do not always have the protective gear that they should.

Most offensive of all, New York City taxpayers are subsidizing Lage’s business model. It appears from official records that Lage’s car washes have received more than four hundred thousand dollars in contracts and sales from the New York City Police Department and other City agencies since 2007.

The terms and working conditions at car washes in the car wash industry across the city are too often deplorable. The low pay, the erratic hours, the hard work and trying working conditions combine to create a dehumanizing environment for too many carwasheros. Because Lage is the biggest car wash operator

in the City, the New York Daily News branded him the Car Wash Kingpin. Because of his size in the industry, we believe his companies could set a standard for the industry to emulate.

Beginning in 2012, car wash workers across New York City are rising up and demanding better treatment from their employers and from John Lage in particular. They’re voting to unionize, so they can speak with one voice, and win decent wages and dignity on the job. It’s time for John Lage to listen.

This report describes the Wash New York campaign that workers and their allies are leading to clean up the city’s car wash industry. It tells the story of John Lage’s treatment of his companies’ workers and gives a window into their continuing struggles. Based on first-hand observations by workers themselves, it estimates the annual gross revenue of Lage’s businesses. It also shows the intricate web of companies that he and his associates have erected to operate their businesses. And it describes the policies that New York City can adopt to improve the quality of jobs in the car wash industry so that the workers who clean the cars of some of the richest people in the world don’t have to continue toiling in near poverty.

Workers deserve dignity on the job, the ability to support themselves and their families, and a piece of the American dream.

Photo Bark Bud

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The Wash New York Campaign

Campaign launches with release of Wash New York: The Dirty Business of Cleaning NYC’s Cars, a report finding poor conditions and low pay throughout the industry. 2

March 6, 2012

Car wash workers from dozens of car washes across the city are now exposing abuse on the job and demanding respect, safer working conditions, and decent wages. Wash New York is a coalition of car wash workers and the community organizations known as Make the Road New York and New York Communities for Change. The Wash New York campaign is supported by the RWDSU. Wash New York is campaigning to raise wages and improve working conditions throughout the car wash industry. The effort draws strength from community-based organizations, labor unions, the faith community, environmental justice groups, and immigrants’ rights organizations who all want to see the car wash industry respect its workers

and our neighborhoods. Critical allies in this campaign include the New York Taxiworkers Alliance and the International Association of Machinists District 15, which represents black car drivers in the city.

Wash New York reflects an innovative and instructive model that bridges the gulf between grassroots community-based organizations and organized labor. It integrates three elements to improve conditions: organizing to unionize the industry, creative legislative advocacy, and targeted litigation.

The WASH NY campaign launched on March 6, 2012 and quickly gained momentum. To date, workers have won six unionization elections with the RWDSU, all by landslide margins. They have also had a successful strike at

the Sunny Day carwash in the Bronx to protest non-payment of wages and helped organize two mass mobilizations of low wage workers in New York City. The following are a few key highlights.

The Daily News breaks the story that Attorney General Eric Schneiderman “is investigating whether New York City’s car-wash kingpin [John Lage] has financed a life of luxury by cheating workers out of wages.” 3

March 26, 2012

To address the problems in the industry, Councilmember Melissa Mark-Viverito introduces The Car Wash Accountability Act in the New York City Council. 4

April 30, 2012

The New York City Council holds an oversight hearing on conditions in the industry. 5

May 2, 2012

WASH NY announces lawsuits for unpaid wages against Hi-Tek car washes in East Elmhurst and Brighton Beach, (not-owned by Lage) alleging nonpayment of overtime and other wage and hour violations. 6

June 27, 2012

Dozens of New York City Council members and staff gather to meet worker leaders of the WASH NY campaign, committing their ongoing support to the workers.

June 2012

Wash NY co-organizes citywide protest of thousands of low-wage workers who march from Herald Square to Union Square and then deploy busloads of supporters to car washes and other low-wage worksites around the City to demand accountability from employers.

July 24, 2012

Car wash workers at Hi-Tek Astoria vote to unionize. They overwhelmingly vote to be represented by the RWDSU in a government run secret-ballot election. This is the first known car wash unionization on the East Coast of the United States. 8

September 8, 2012

Car wash workers vote to unionize at LMC Webster in the Bronx, a car wash owned by Car Wash Kingpin John Lage. 9

October 20, 2012United New York releases report naming John Lage one of the city’s worst employers. 7

July 2012

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The Wash New York Campaign

“The bosses will respect us better now, and see us as people,”

Francisco Lopez, a

thirty-seven year old Salvadorian immigrant who works at the Webster

Car Wash, owned by Car Wash Kingpin John Lage or his business

associates, after he and other worker leaders voted to unionize with the

Retail, Wholesale & Department Store Union (“RWDSU”), the Union that

car wash workers all over the city are joining.1

Car wash workers at Sunny Day Car Wash in the Bronx hold a work stoppage to protest nonpayment of several weeks of pay; management retaliates by firing 12 workers. The workers sign-up with the RWDSU and an Unfair Labor Practice Strike begins.10 Unfair labor practice charges are filed by the RWDSU against Sunny Day and the workers picket the car wash for three months. Many cars are turned away.

November 11, 2012

Car wash workers at Sutphin Car Wash (Queens) and Soho Car Wash (Manhattan) – both washes owned or operated by Car Wash Kingpin John Lage or his business associates – vote to unionize with the RWDSU.11

November 21, 2012

MRNY, NYCC, and RWDSU and allied organizations convene a mass mobilization of low wage workers in Times Square.12

December 6, 2012

Attorneys for the Soho Car Wash inform the RWDSU that the workers are slated to lose their jobs because the operation is to be closed after it was sold to developers earlier in the year.

February 1, 2013

After striking and picketing for three months the Sunny Day Car Wash workers win their fight to be rehired. All the strikers are reinstated to their jobs. The National Labor Relations Board is now calculating how much back pay Sunny Day owes the workers who struck to protect their rights.

February 11, 2013

After the RWDSU demands that the company bargain over the effect of the shut down and the workers at the sold Soho Car Wash protest and strike, an agreement is reached in union negotiations with the owner for all the workers to be hired at other locations and to receive extra pay for working until the shutdown. New

February 20, 2013

RWDSU files petition with the National Labor Relations Board to hold a vote for the union by the workers at the Jomar Corporation Car Wash in Flushing Meadows, Queens.

March 13, 2013

York Attorney General Schneiderman announces in a press release that Lage and his business associates agree that if the workers are not hired within 30 days at other locations, they will be responsible for a fine of $20,000 per worker not timely hired.

Jomar Car Wash workers vote 23-1 in favor of unionizing with the RWDSU. The RWDSU has scheduled union contract negotiations to begin with the Hi-Tek Astoria carwash, the LMC Webster carwash in the Bronx, and the Sutphin carwash in Jamaica, Queens.

April 2013

Workers at Sunny Day Car Wash become the fifth group of workers to vote for unionization.13

December 11, 2012

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Conditions in the Car Wash Industry

“I came to this ‘land of opportunity’ with so many hopes, but I have become disillusioned about being able to help my family. The treatment we receive makes us feel powerless. They yell at us, they disrespect us, and they treat us as if we are not even human beings.” -

A New York City carwashero 16

In the car wash industry, which includes about 200 carwashes in the city, the hours are long and the pay is extremely low: according to an early-2012 survey of 89 workers at 29 city car washes, more than half reported working in excess of 60 hours a week, yet 75 percent of workers who worked more than 40 hours in a week complained that they did not receive the legally-mandated overtime pay.17 The survey also found that two-thirds of workers reported making less than the state minimum wage of $7.25 per hour and that approximately 80 percent of the workers reported making less than $400 a week.18 In 2008, an investigation by the New York State Department of Labor found that 78 percent of the investigated city’s car wash operators were guilty of wage and hour violations and that the city’s car washes deprived workers of $6.5 million in wages.19

The economic insecurity caused by low wages and long hours is exacerbated by erratic and unpredictable scheduling. Workers report that car wash bosses routinely send them home when the weather turns bad or business slows down. Too often when workers in this industry are sent home because of weather conditions or slow work the workers receive little or no pay at all for the lost time.

“Whenever there is any rain or snow, or if business is slow, the manager immediately sends some of the workers home. When the manager sends us home, they do not pay us for the rest of the day. Because of this, we never know how much money we’re going to make during a day or a week,” one Brooklyn car washer reported in the 2012 survey. 20 Sometimes after workers get sent home, the weather improves or business picks up. The workers who remain are then required to do the work of those sent home.

In addition, some workers have complained that they are illegally required to pay for the damage if a car’s carpet gets stained or a mirror scratched.21 The insecurity of low pay and uncertain hours is devastating. With an annual income too often of only $15,000 to $20,000, workers spend their days washing cars that might cost more than they make all year – and then go home to families struggling to make ends meet.

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“This is a time for immigrant workers to earn a voice through their union to speak up to their bosses,”said Ernesto Salazar, a car washer at the Webster carwash in the

Bronx who voted to unionize. “The union will support us in pushing

to raise wages. You can’t afford to live here on the amount they

pay us.” 14

“Car wash workers across the city are seeing the strength of the campaign and it is giving them hope,”said RWDSU Organizer Joseph Dorismond. “It is a

powerful message that by standing together they can make

things better.”

“We deserve a fair salary, job security, and other benefits,” said Santos Lopez, a Guatemalan immigrant who has

lived in this country for eight years and worked at the

Sutphin Car Wash in Jamaica for four. “With a union,

they will treat us with respect and dignity. I’m very happy

for myself and my co-workers because of the changes

we think will happen at our workplace.” 15

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John Lage is living what most people would call, “the good life.” According to public records, he owns a home in Mount Vernon, NY (purchased in 2008 for $345,617) 34, a waterfront home in Queens, NY (estimated to be worth $1.49 million) 35, and a home in Eastchester, NY (purchased for $1.9 million in 2002) 36. His home on Lakeshore Drive in Eastchester has access to a private lake.37

John Lage The Car Wash Kingpin

The Car Wash Kingpin’s Life of Luxury

The biggest player in New York City is John Lage – the man the Daily News branded the “Car Wash Kingpin.” 22 Lage and his business associates own approximately 18 car washes in the city, with heavy concentrations in Queens and the Bronx.23 The signage at multiple locations brands the washes as LMC Car Wash and Lube (presumably, short for “Lage Management Corp.”).24

Car washes represent major business enterprises. The capital costs of starting a full service car wash are significant – in 2007 the Franchise Times reported that “a typical full-service car wash on average costs $2.5 million to open.” 25

The Lage chain of washes is not owned by a single corporate entity. Instead, Lage and his business associates have developed a complex network of companies that operate the washes and own or lease the land on which they sit.26 According to the official records of the New York Department of State, Lage is linked to 47 active New York State corporations.27 Lage’s business associate, Fernando Magalhaes, is linked to 5 of those, and is listed as a sole principal in one other. Jose Pires is a principal in 5 entities together with Lage and

Magalhaes, and Meyrielly Magalhaes is a principal in one together with Lage and Fernando Magalhaes; she is the sole principal of another.28 The entities all share linkages to various real estate holdings, and two operational hubs. Graphics below illustrate the relationship in the Lage network of the individual car wash entities; real estate corporations; and real property to the two central operating hubs, and to Lage, Magalhaes, and their associates.

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The 34 Million Dollar ManBecause his corporations are not publicly traded there is no public record of exactly how much gross revenue John Lage brings in through his car wash businesses. However, workers at four of the washes he and/or his business associates own and/or operate observed the number of cars that were serviced during certain periods of time over two weeks in January 2013. Based on the average prices of the washes at those locations, and a comparison of those operations with other washes in the city, the authors of this report have developed an estimate of Lage’s total revenue from the car wash work at these operations. Using this estimate and worker

observations it is possible to generate a very rough estimate of how much revenue the businesses bring in from detailing work. Those figures enable us to estimate that the car wash companies owned or operated by Car Wash Kingpin John Lage and his business associates collectively may generate revenue somewhere in the neighborhood of $34 million per year. (Notably, this figure excludes the revenue from oil and lube services which are provided at some of these operations.) If accurate, it would mean that his operations generate on average a gross revenue exceeding $68,000 per worker per year.

MethodologyThe $34 million annual figure is derived as follows. Workers from four different car washes owned or controlled by Lage and Magalhaes – Sixth Avenue Car Wash in SoHo1, Manhattan; LMC Car Wash and Lube in Astoria, Queens; Webster Car Wash in the Tremont section of the Bronx; and Jomar Car Wash by Flushing Meadows in Queens – collected estimates of the number of cars that were washed during certain days earlier this year. Workers also reported the prices of the two kinds of washes that are offered – regular and super – and their estimates for the distribution of cars that received regular and super washes, respectively. In two of the four locations, workers also made estimates about how much gross revenue their shop earned for detailing work. These estimates suggested that detailing work can range from 27 to 51% of the revenues earned by the wash. Taking the average of those – 39% - it was possible to project the average total weekly revenue from the detailing at other carwashes.

1Most estimates were based on observations taken in January, 2013. The Soho wash closed in February 2013 after the lease was sold. As detailed above, the Soho workers were placed at other washes owned or operated by Lage in NYC.

Based on information from workers and from others, we divided each of the four wash’s average weekly revenue by the number of workers we believe to be working at the shop. We then averaged the per-worker revenue for the four shops to establish a mean weekly average revenue per worker across the four shops. We could then take that figure and multiply it by the total number of workers that we believe to be employed at Lage washes citywide, based on worker reports and other observations – 500 – to generate an estimate of revenue across the NYC entire operations. In addition to those detailed above, that estimate depends on a number of additional assumptions, including that revenue in January is reflective of revenue in other months. While January weather is often conducive to higher car wash volume than, for example, spring or summer weather, our revenue estimates do not include oil change and lube revenue. Another assumption was that the average revenue per worker at the four sample washes is equivalent to the mean revenue per worker across the City. There is no doubt that if we had better information we could develop a better estimate, but whatever the particular calculation, it is obvious to us that when considered collectively the various carwashes generate significant gross revenue for the owners.

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The Car Wash Kingpin’s Past Pay Practices

The Car Wash Kingpin’s Current Pay Practices

Despite his companies’ enormous streams of revenue, John Lage’s companies have tangled with the government over proper wage payments. In 2005, the United States Department of Labor filed a major lawsuit against him, alleging that he and 15 of his companies had “willfully and repeatedly” violated minimum wage and overtime law by failing to pay workers the money that they were owed under federal law.29 Through three consent judgments and a settlement, Lage eventually agreed to pay over $4.7 million in back wages, damages, and interest to more than 1,300 employees.30 As part of the settlements, Lage agreed never to violate the law again.

In 2012, however, New York Attorney General Eric Schneiderman announced that his office was opening a new investigation into Lage and his business practices. On March 26, 2012, the Daily News reported that: “Attorney General Eric Schneiderman last week slapped a subpoena on John Lage.” The article explained: “The state is investigating whether New York City’s car-wash kingpin has financed a life of luxury by cheating workers out of wages, the Daily News has learned.“31 The results of this investigation have not yet been made public.

“The state is investigating whether New York City’s car-wash kingpin has financed a life of luxury by cheating workers out of wages, the Daily News has learned.“

Current workers at Lage’s car washes report that they are still paid very low wages. For example, in January, Santos Garcia, who works as a cleaner at Lage’s Sutphin Car Wash in Jamaica, reported that he worked 56.5 hours in a particular week. His hourly base wage was only $6.15 per hour; even with the tips he received, his base hourly income was only $7.33. “I’ve worked at the Sutphin car wash since 2008,” says Garcia. “I’m paid so little. Usually I make $250 or $300 per week. Sometimes, on a really good week, I make $450. But it’s never really enough. I have to send money back home to support my family and fiancé. But sometimes I don’t even have enough money to pay my rent, let alone send money back.”

Two other Sutphin workers also report earning similarly low wages. Juan Rosario reported that he had worked 50.5 hours in a particular week and, including tips, earned a base hourly income of only $7.31. After taxes, he brought home only $381 that week. His co-worker, Daniel Gomez, reported earning a similar hourly wage, working 45.5 hours and bringing home only $326, including tips and after taxes.

Researchers at the Massachusetts Institute of Technology have calculated that an adult working forty hours a week needs an hourly wage of $12.75 to support himself in New York City.32 This living wage is far above many and probably all of the workers at a Lage car wash. An adult who is supporting one or two children in New York City needs a living wage of $24.69 and $32.30, respectively.33 Unless things change, the car wash workers cleaning New York’s luxury vehicles for John Lage’s companies have no hope of earning wages sufficient to raise a family in this city.

“I started working at Jomar car wash a year ago. First I worked only

on weekends and later full-time. They hired me as a driver but then

they made me do other types of work as well. They increase the amount of

work and they don’t let us go to the bathroom [when we

want to].”

“I am mistreated terribly. The

bosses treat me like an animal, an

object. The bosses don’t give us goggles

. . . The chemicals we have to use make my

eyes pretty irritated by the afternoon – I’m

constantly tearing and red-eyed. I make so little

money. Sometimes I don’t have enough food and

I have to walk to work instead of take a bus or

subway. When it rains, the boss often sends

me home. There’s rarely any money left

to send back to my family.”

“The managers treat me

really poorly, as if I weren’t

human. They order us around

so condescendingly. Before

we started organizing, we

weren’t given any protective

equipment. We had to buy

gloves ourselves.”

“I started working at the

Astoria car wash six years ago. My

schedule is really unpredictable. When

it rains they send us home. On any given

week, I don’t know if I’m going to work five

days, four days, or fewer. It’s really hard living

with this insecurity and this low pay. I don’t have

enough money to buy myself the clothing that I

need and I don’t eat very well either. My mother

lives in Mexico and she depends on me to

send her money so she can buy medicine

– but because I get paid so little I

sometimes can’t send her

what she needs.”

Meet John Lage’s Workers

The difficult conditions start with unpredictable scheduling that can vary significantly from day to day. Not having a union contract to protect them, scheduling, hours, and pay are subject to the whims of management, and especially, the weather. Car wash workers have no idea how many hours they’ll be working in any given week. Too often they are sent home because business is slow. They are also frequently called into work on a scheduled day off and have to cancel previously made plans. An issue as basic as the right to take a day off to get married or be present when a child is born will be one of the RWDSU’s demands in union negotiations. The extreme fluctuations in hours and pay

not only makes sticking to a regular budget a struggle it also deprives these workers of the ability to have a normal home life.

The work also involves exposure to highly concentrated cleaning and degreasing substances, and work around high pressure hoses, moving machinery, pervasive water and wet surfaces. During the winter months the workers frequently have to work while exposed to the cold.

Workers at the companies that Lage owns or operates with his business associates describe harsh working conditions.

Employees at John Lage’s car washes work under

difficult conditions. They work very hard and suffer

low pay, unpredictable schedules, sporadic verbal

abuse from managers, and exposure to industrial

strength chemicals too often without gloves, goggles, or

other personal protective equipment.

Luis Rosales Augustín Lira

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Wendell Fisher

John Lage’s Government Contracts

New York City taxpayers have spent hundreds of thousands of dollars supporting John Lage’s business practices. Between 2007 and 2013, Lage Car Wash, Inc. had contracts worth $234,525 with the New York City Police Department to wash the vehicles located at the Department’s headquarters.38 Lage Car Wash also had contracts worth $75,000 with the Department of Housing Preservation and Development.39 In addition to these contracts, the New York City government has made payments to Lage Car Wash, Inc. totaling at least $135,924.99 since January 1, 2010 for car wash services and at least another $37,789 to seven other entities controlled by Lage or Magalhaes.40

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be,

Inc.

J. La

ge (P

R), F

. Mag

alha

es (P

R, C

C, P

O),

Pire

s (P

R)M

etro

(DP,

CC,

PO

)M

icha

el's

Car W

ash,

Inc.

J. La

ge (C

C)36

-‐21

(DP,

CC,

PO

)

Mid

nigh

t Exp

ress

Lub

e, In

c.J.

Lage

(CC)

4391

(DP,

CC,

PO

)Pe

lham

CW

Cor

p.J.

Lage

(CC,

PO

)43

91 (D

P, C

C, P

O)

Que

ens B

oule

vard

Car

W

ash,

Inc.

J. La

ge (P

R), F

. Mag

alha

es (P

R), P

ires (

PR, C

C,

PO)

Met

ro (C

C, P

O)

Que

ensb

oro

C W

Cor

p.J.

Lage

(CC,

PO

)43

91 (D

P, C

C, P

O)

Smar

t Car

Was

h Co

rp.

M. M

agal

haes

(CC)

Met

ro (D

P, C

C, P

O)

Car W

ash an

d/or Lub

e or Sup

ply Co

rporate En

tities

Entit

y N

ame

Prin

cipa

ls, O

wne

rs a

nd A

gent

s for

Pro

cess

Addr

esse

s100 Main Realty Corp.

J. Lage (C

C)4391 (D

P, CC, PO), 100E (O

)

2407 Realty Corp.

J. Lage (C

C)4391 (D

P, CC, PO),

2335/2407 (O)

315 R.E. Corp.

J. Lage (C

C)4391 (D

P, CC, PO), 315 (O)

38-‐40 21st Street C

orp.

J. Lage (C

C, PO)

38-‐40 (O)

Lage Properties C

orp.

J. Lage (D

P, CC)

4391 (D

P, CC, PO),3

6-‐21 (O

)613 Realty Corp.

J. Lage (C

C)611 (O, D

P, CC, PO)

2321 Realty Corp.

J. Lage (C

C)4391 (D

P, CC, PO), 2321 (O

)Sudz N' Bubbles Car W

ash

LLC

4391 (D

P), 324 (O

)De

sarc Road Realty Corp.

J. Lage (C

C)4391 (D

P, CC, PO), 90-‐55 (O)

2434 Boston Ro

ad Realty

Corp.

J. Lage (C

C)4391 (D

P, CC, PO)

J.H.N. Corporatio

nJ. Lage (D

P, CC)

4391 (D

P, CC, PO), 2591 (O

)1785 W

ebster Corp.

J. Lage (C

C)1785 (O

, DP, CC, PO)

1095 E. Tremont A

ve. Corp.

J. Lage (D

P, CC, PO)

4391 (C

C, PO), 1095 (D

P)Al-‐Jo

Real Estate Inc.

J. Lage (D

P, CC, PO)

4391 (D

P, CC, PO), 1865 (O

)1781 Realty Corp.

J. Lage (C

C)4391 (D

P), 1781 (O, CC, PO)

Webster Real Estate Co

rp.

J. Lage (D

P, CC, PO)

4391 (D

P, CC, PO)

JOS Realty Corp.

J. Lage (C

C, PO)

4391 (D

P, CC, PO)

Addr

ess

Ow

ner/

Mor

tgag

e Ag

reem

ent

Estim

ated

Mar

ket V

alue

100E

100 Main Realty Corp -‐ N

ew Rochelle

records

$1,228,041 -‐ New

Rochelle

property re

cord

270-‐80

J. Lage -‐ NYC Records

$849,599 -‐ NYC re

cords

2335/2407

2407 Realty Corp. -‐ NYC re

cords

$1,574,187 -‐ NYC re

cords

315

315 R.E. Corp. -‐ NYC re

cords

$930,473 -‐ NYC re

cords

38-‐40

38-‐40 21st Street C

orp. -‐ NYC re

cords

$1,431,657 -‐ NYC re

cords

36-‐21

Lage Properties C

orp. -‐ NYC re

cords

$1,147,201 -‐ NYC re

cords

611


cords

$1,445,862 -‐ New

Rochelle

records

2321


cords

$1,713,331 -‐ NYC re

cords

324

Sudz N' Bubbles Car W

ash LLC -‐ Property

Shark record

$1,539,200 -‐ Property Shark

record

90-‐55

Desarc Road Realty Corp. -‐ NYC re

cords

$1,548,379 -‐ NYC re

cords

2591

J.H.N. Corporatio

n -‐ NYC re

cords

$1,089,105 -‐ NYC re

cords

1785

John Lage -‐ NYC re

cords

$314,794 -‐ NYC re

cords

1781


cords

$328,923 -‐ NYC re

cords

1095

John Lage -‐ NYC re

cords

$575,164 -‐ NYC re

cords

1865

Al-‐Jo

Real Estate Inc. -‐ NYC re

cords

$602,277 -‐ NYC re

cords

$16.

32 M

illio

n

Real

Pro

pert

y

Tota

l Est

imat

ed M

arke

t Val

ue

Real

Pro

pert

y H

olde

r and

/or M

ortg

agor

PR = Prin

cipa

l nam

ed City

Ven

dor r

ecords

MG = Office

Man

ager -‐ from

con

tract w

ith NYP

DDP

= Dep

t. of State (D

OS) proce

ss add

ress

611 = 61

1 North Ave

., New

Roc

helle

, NY -‐ inc

lude

s 613

1785

= 178

5-‐17

87 W

ebster Ave

., Bron

x, NY

1095

= 109

5 Ea

st Tremon

t Ave

., Bron

x, NY

Metro = 91-‐10

Metropo

litan

Ave

., Re

go Park, NY

1865

= 186

5 Web

ster Ave

., Bron

x NY

1781

= 178

1-‐83

Web

ster Ave

., Bron

x, NY

100E

= 100

East M

ain St., New

Roc

helle

, NY

2591

= 259

1 At

lantic Ave

., Broo

klyn

, NY

270-‐80

= 270

-‐80 Walton Av

e., B

ronx

, NY

2335

/240

7 = 23

35 & 240

7 Bo

ston

Pos

t Roa

d, Bronx

, NY

315 = 31

5 Gr

and Co

ncou

rse, Bronx

, NY

38-‐40 = 38

-‐40 21

st Stree

t (ak

a 38

-‐26 21

st Stree

t), Lon

g Island

City, N

Y36

-‐21 = 36

-‐21 21

st Stree

t, Lo

ng Island

City

, NY

Pires =

Jose Pire

sT. Lage = To

ny Lag

eM. Lage = Micha

el Lag

e

4391

= 43-‐91

Bos

ton Po

st Roa

d, Pelha

m, N

Y

E. Lop

es = Ernesto Lop

es

Key

J. Lage

= Jo

hn Lag

eF. M

agalha

es = Ferna

ndo Mag

alha

esM. M

agalha

es = M

eyrie

lly M

agalha

es

CC = Cha

irman

or C

EO -‐ DO

S reco

rd

2321

= 232

1 Fo

rest Ave

., Staten

Island

, NY

90-‐55 = 90

-‐55 De

sarc Rd., Jam

aica, N

Y

PO = Prin

cipa

l Exe

cutiv

e Office

s -‐ DOS reco

rd

324 = 32

4 Ha

lstea

d Av

e., M

amaron

eck, NY

Property Address Owner Estimated Market Value

Eastchester, NYJohn Lage (Property Shark)

$1,900,000 (purchase price in 2002 -‐ Property Shark)

Mount Vernon, NY

Joao Viera Lage (KnowX record) $354,344 (Zillow estimate)

Queens, NYJoao Lage (NYC records) $1,490,000 (NYC records)

Pho

to J

orge

Qui

nter

os

1 Erica Pearson, Workers at Bronx car wash vote yes for union, Daily News (Oct. 21, 2012), at http://www.nydailynews.com/new-york/workers-bronx-car-wash-vote-yes-union-article-1.1188721 (last viewed March 22, 2013).

2 Vera Chinese, Car wash workers endure mistreatment, report says, NY Daily News (Mar. 6, 2012), at http://www.nydailynews.com/new-york/queens/car-wash-workers-endure-mistreatment-report-article-1.1034080 (last viewed March 22, 2013).

3 “A Local Law to amend the administrative code of the city of New York, in relation to licensing car washes.” http://legistar.council.nyc.gov/LegislationDetail.aspx?ID=1123785&GUID=582DD51F-BA47-4A9F-AE94-116A9827311A (last viewed March 22, 2013).

4 ”City Council Holds Hearing on Car Wash Industry,” http://mmviverito.com/2012/05/02/city-council-committee-holds-hearing-on-car-wash-industry/ (last viewed March 22, 2013).

5 Erica Pearson, State probes whether New York car-wash kingpin John Lage cheated workers out of wages, NY Daily News (Mar. 26, 2012). At http://www.nydailynews.com/new-york/state-probes-new-york-car-wash-kingpin-john-lage-cheated-workers-wages-article-1.1050707 (last viewed March 22, 2013).

6 Erica Pearson, Lawsuit claims Brighton Beach car wash workers got hosed on pay, NY Daily News (Jun. 27, 2012). At http://www.nydailynews.com/new-york/brooklyn/lawsuit-claims-brighton-beach-car-wash-workers-hosed-pay-article-1.1103622 (last viewed March 22, 2013). Complaint, Oropeza, et. al. v. Hi Tek United Corp, et. al, 12-cv-03283 (E.D.N.Y. Jun. 6, 2012); Complaint, Flores, et. al. v. Astoria Car Wash Hi Tek 10 Minute Lube, Inc, et. al., 12-cv-3531 (E.D.N.Y. Jul. 17, 2012).

7 United NY is a coalition of neighbors, community groups, faith organizations and labor united in the fight for good jobs, corporate accountability and stronger communities. The Economic Low Road: Low-Wage Workers (Jul. 19, 2012), available at http://unitedny.org/2012/07/19/the-economic-low-road-low-wage-workers/ (last viewed March 22, 2013).

8 Erica Pearson, Workers at Queens car wash form city’s first car washers union, NY Daily News (Sept. 9, 2012), at http://www.nydailynews.com/new-york/workers-queens-car-wash-form-union-article-1.1155325 (last viewed March 22, 2013).

9 Erica Pearson, Workers at Bronx car wash vote yes for union, NY Daily News (Oct. 21,2012). http://www.nydailynews.com/new-york/workers-bronx-car-wash-vote-yes-union-article-1.1188721 (last viewed March 22, 2013).

ReferencesL

28 See Appendix 1. Meyrielly Magalhaes’ connection to Lage Car Wash Inc. is established not by Department of State records, but in the Lage Car Wash Inc. contracts with the NYPD (See, supra, Sec. F), where she is listed as the office manager.

29 Complaint, Elaine Chao, Secretary of Labor v. John Lage, et al, 05 Civ. 6786 (S.D.N.Y. July 28, 2005).

30 Dep’t of Labor Press Release, New York City area car washes agree to pay employees $3.4 million in back wages and damages to resolve U.S. Labor Department lawsuit (June 30, 2009), at http://www.dol.gov/opa/media/press/esa/esa20090528.htm (last viewed March 22, 2013).


32 Living Wage Calculation for Queens County, New York, at http://livingwage.mit.edu/counties/36081 (last visited March 22, 2013).

33 Living Wage Calculation for Queens County, New York, at http://livingwage.mit.edu/counties/36081 (last visited March 22, 2013).

34 Property Shark Report for property in Mount Vernon, NY 10550 (sale date of 6/12/2008).

35 New York City Property Tentative Assessment Roll for property located in Queens NY 11357 (Jan. 5, 2013).

36 Property Shark Report for property located in Eastchester, NY 10709 (sale date of 9/30/2002).

37 See Appendix 2; Property Shark Report lists lot at 0.21 square acres, equal to 9140 square feet.

38 See Contracts Numbered 20080010529, 20090006044, 20100009450, 20111413369, 20131400967, available through the New York City Comptroller’s website at http://www.comptroller.nyc.gov/mymoneynyc/clearview/.

39 See contracts CT180620121402627, CT180620100002001, CT180620111412799.

40 See disbursements to Lage Car Wash Inc., Webster Car Wash, Inc., 109th & First Avenue Corp. Atlantic Car Wash and Lube Center Inc., Jomar Car Wash Corp., Queens Boulevard Car Wash, Inc., Lage Car Wash, Inc., Tremont Car Wash, Inc., available through the Comptroller’s CheckBook Database at http://www.checkbooknyc.com/.

41 Yasmeen Khan, As Expected, City Council Passes Living Wage Bill by Wide Margin, WNYC (April 3, 2012), at http://www.wnyc.org/blogs/empire/2012/apr/30/expected-city-council-passes-living-wage-bill-wide-margin/ (last viewed March 22, 2013).

10 Erica Pearson, Bronx car-wash workers at Sunny Day Car Wash walk off job in pay spat, NY Daily News (Nov. 13, 2012), at http://www.nydailynews.com/new-york/bronx-car-wash-workers-walk-job-move-unionize-article-1.1201349 (last viewed March 22, 2013).

11 Megan Montalvo, Jamaica Car Wash Workers Join Union, Queens Tribune (Nov. 29, 2012), at http://www.queenstribune.com/news/News_112912_JamaicaCarWashWorkersJoinUnion.htm (last viewed March 22, 2013).

12 Hector Figueroa and Orlando Findlayter, Memo to Congress: Give low-wage workers a fair deal; pass the American Jobs Act, NY Daily News (Dec. 17, 2012), at http://www.nydailynews.com/new-york/guest-pass-jobs-act-congress-article-1.1222109 (last viewed March 22, 2013).

13 Erica Pearson, Another car wash votes to unionize, NY Daily News (Dec. 11, 2012), at http://www.nydailynews.com/new-york/union-vote-bronx-car-wash-article-1.1218123 (last viewed March 22, 2013).

14 Steven Greenhouse, Challenging Owners to Raise Wages, Workers at a Second Carwash Vote to Unionize, NY Times (Oct. 21, 2012), at http://www.nytimes.com/2012/10/22/nyregion/webster-carwash-in-the-bronx-votes-to-unionize.html (last viewed March 22, 2013).

15 AnnMarie Costella, Jamaica Car Wash Workers Unionize, Queens Chronicle (Nov. 29, 2012), at http://www.qchron.com/editions/eastern/jamaica-car-wash-workers-unionize/article_d9d404db-560a-560f-ae3c-62038397f87f.html (last viewed March 22, 2013).

16 Wash New York, The Dirty Business of Cleaning NYC’s Cars: Car Wash Workers Face Low Pay, Offensive Conditions, and Poor Treatment (2012) (“Dirty Business”) at 7, at http://www.washnewyork.org/files/car-wash-report.pdf.

17 Dirty Business at 2-3 18 Dirty Business at 2-3. 19 Dirty Business at 2; New York State Car Wash Association (NYSCWA) Legislative Update (Fall 2012). At http://www.nyscwa.com/news/fall-2012_legislativeupdate.cfm (last viewed March 26, 2013).

20 Dirty Business at 3. 21 Dirty Business at 3-7.


23 See Appendix 1.

24 For example, Lage’s car washes in Astoria, Harlem, and South Bronx all bear the LMC branding. This can be viewed on maps.google.com for the following addresses: 36-21 21st Street, Astoria; 334 East 109th Street, Harlem; 315 Grand Concourse, Bronx.

25 Jonathan Maze, At the Car Wash, Franchise Times (Sept. 2007). At http://www.franchisetimes.com/September-2007/At-the-car-wash/ (last viewed March 26, 2013).

26 See Appendix 1. 27 See Appendix 1.

car wash kingpin: john lage and the poor conditions in new york

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